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The 8 best small business lines of credit for 2022 are all in the $5,000 to $25,000 range. These lines of credit will help you grow your business and create a bank account that is easy for you to use.
Small business lines of credit are often used by company owners for working capital or to help their cash flow over a short period of time. The finest small company lines of credit combine convenience, reasonable interest rates, and the benefit of not needing collateral. We’ve selected the eight finest small company lines of credit based on these criteria.
How Did We Choose the Best Small Business Credit Lines?
Rates, periods, credit score criteria, and financing speed were all important considerations in our assessment of small company lines of credit. Traditional lenders may provide higher rates if a company has been in operation for at least two years and its owners have excellent personal credit. Many of the companies on our list, however, provide lines of credit with a faster approval and financing procedure.
BlueVine
What We Enjoy
- Rates that are competitive
- Quick funding
- Application through the internet
Features
- The maximum award is $250,000.
- 6 months in business is the bare minimum.
- APR ranges from 4.8 to 78 percent.
- Weekly or monthly payments are accepted.
- Term of repayment: 6 or 12 months
- 600 is the minimum credit score.
- $120,000 in yearly income is the minimum requirement.
- Speed of funding: 1 day
The application procedure with BlueVine is extremely basic and straightforward. Its approval and financing times are typically one day, providing companies with fast access to cash. The terms of repayment may be monthly or weekly, and they can last up to a year.
Prior to COVID-19, BlueVine’s business line of credit was only accessible to companies that had been in operation for six months or less. Currently, companies must have been in existence for two years to qualify.
Why we like it:
Among the small company lines of credit available, BlueVine’s fast and easy application procedure, as well as flexible payback terms if approved, offer it an advantage in a crowded industry.
JPMorgan Chase
What We Enjoy
- Increased credit limit
- Payments are made every month.
- It’s possible that the yearly charge will be waived.
What Isn’t There
- There is no online application.
- Long approval and financing processes
Features
- A maximum of $500,000
- Minimum number of years in business: none
- Range of APRs: up to 25%
- Payments are made monthly.
- Term of repayment: Variable
- 700 is the minimum credit score.
- Annual revenue minimum: $100,000
- Funding timeframe: 30 days
JPMorgan Chase’s business line of credit is an excellent choice for small company owners that need quick access to cash. Chase has the largest possible line of credit of any of the lenders on our list, with a maximum line of credit of $500,000. Depending on your credit usage throughout the course of the year, the yearly charge may be eliminated for companies who utilize their lines of credit often.
The absence of an online application and a longer approval procedure are two drawbacks of obtaining a business line of credit from Chase. Chase will, however, finance companies that have been in operation for less than two years provided other criteria, such as credit score, are fulfilled.
Why we like it:
For eligible customers, this is a fantastic line of credit option.
TD Bank
What We Enjoy
- Rates that are competitive
- Payments made only on interest
- Application through the internet
Features
- The maximum award is $100,000. over the internet
- Minimum number of years in business: none
- Range of APRs: up to 25%
- Payments are made monthly.
- Term of repayment: Variable
- 650 is the minimum credit score.
- Annual revenue minimum: varies depending on the business scenario
- 5 days for funding
TD Bank allows customers to apply online for unsecured loans of up to $100,000, with approval taking around five business days. TD is one of the few lenders that allows firms to pay just the interest on a line of credit, which will benefit companies with shorter revenue cycles.
One significant drawback of TD is that candidates must be situated inside TD Bank’s 16-state footprint, which is mostly on the East Coast of the United States.
Why we like it:
The ability to make interest-only payments gives small company owners more flexibility.
Fundbox
What We Enjoy
- Accelerated financing
- Application through the internet
- Minimum needs are lowered.
What Isn’t There
- Repayment periods that are shorter
- Interest rates that are higher
Features
- The maximum award is $150,000.
- 6 months in business is the bare minimum.
- The APR ranges from 10% to 79 percent.
- Weekly payments are made.
- Term of repayment: 12 or 24 weeks
- 600 is the minimum credit score.
- Annual revenue minimum: $100,000
- Same-day funding is available.
Fundbox is a fantastic option for younger companies that only need to return money for a limited period of time. A company owner just has to be in business for six months and have a credit score of 600 to qualify for funding from Fundbox.
Fundbox’s payback terms are shorter than those of many of the lenders we looked at, with a maximum of 24 weeks. If you borrow the maximum amount, your weekly payments will be in the thousands of dollars.
Why we like it:
Fundbox allows younger companies to get much-needed financing.
OnDeck
What We Enjoy
- Quick funding
- Qualification requirements that are less difficult to meet
- Application through the internet
What Isn’t There
- Interest rates that are too high
- Monthly charge
Features
- The maximum award is $100,000.
- 1 year in business is the minimum requirement.
- 10.99 percent and higher APR range
- Weekly payments are made.
- Term of repayment: 12 months
- 600 is the minimum credit score.
- Annual revenue minimum: $100,000
- Speed of funding: 1 day
OnDeck’s line of credit is an excellent option for individuals who have only been in company for a short time or have bad credit. OnDeck needs just a year of company ownership and will accept loans with credit ratings as low as 600.
OnDeck’s line of credit has a $20 monthly maintenance charge, and its lines of credit may have exorbitant interest rates, averaging more than 35% APR. However, you are only responsible for paying interest on the amount borrowed, and there are no penalties for paying off the loan early.
Why we like it:
OnDeck allows companies with less-than-ideal credit to get much-needed funding.
US Bank
What We Enjoy
- On lines worth more than $50,000, there is no yearly charge.
- Application through the internet
- The ability to lock in a certain interest rate
What Isn’t There
- Guidelines for higher education
Features
- The maximum amount is $100,000 for unsecured loans and $250,000 for secured loans.
- 2 years in company is the minimum requirement.
- Range of APRs: up to 25%
- Payments are made monthly.
- 680 is the minimum credit score.
- Annual revenue minimum: varies depending on the business scenario
- 5 days for funding
One of the benefits of U.S. Bank’s small business line of credit is the ability to lock in your interest rate on current line balances, which may be beneficial if interest rates rise and you lock in before the rate hike takes effect. Additionally, there is no annual charge for lines of credit of $50,000 or more. There is a $150 yearly charge if your line of credit is less than $50,000.
Companies must have been in existence for two years and have a high credit score to qualify for U.S. Bank’s line of credit, so younger businesses may need to look for other alternatives.
Why we like it:
When paying down a credit line debt, U.S. Bank allows clients to lock in their interest rate.
SBG Funding
What We Enjoy
- Application through the internet
- Qualification requirements are being lowered.
- Quick access to funds
Features
- The maximum award is $150,000.
- 6 months in business is the bare minimum.
- APR (Annual Percentage Rate): 21% and above
- Weekly and monthly payments are accepted.
- Term of repayment: 6 to 24 months
- 500 is the minimum credit score.
- $120,000 in yearly income is the minimum requirement.
- Initial funding time: up to 4 days
SBG Funding provides lines of credit to companies with credit ratings as low as 500 and those have only been in operation for six months. SBG Funding is a suitable choice for companies who need operating capital but do not have excellent credit or have only been in existence for a few months.
Why we like it:
SBG Funding offers operating finance to emerging small companies as well as those with less-than-perfect credit ratings.
Headway Capital
What We Enjoy
- Accelerated financing
- Businesses that are newer to the market are eligible.
- Application through the internet
Features
- Maximum amount: $100,000
- 6 months in business is the bare minimum.
- 40 percent and greater APR range
- Weekly or monthly payments are accepted.
- Term of repayment: 12, 18, or 24 months
- N/A is the minimum credit score.
- $50,000 in yearly income is the minimum.
- Speed of funding: 2 days
The lines of credit offered by Headway Capital vary from $5,000 to $100,000, which is adequate for most small companies with regular expenditures. In comparison to other lenders, Headway Capital offers minimal minimum criteria. It does, however, have some of the highest interest rates among lending institutions. Headway does not have a minimum credit score since the company’s success is evaluated against the owner’s personal credit throughout the decision-making process.
Why we like it:
Headway Capital is one of the few alternative lenders that allows you to repay your loan over a period of up to 24 months.
Conclusion
If your credit score isn’t excellent or you’re a newer company, alternative lenders are more likely to accept you for a line of credit than conventional lenders. You will, however, be charged a higher interest rate. Traditional lenders will provide cheaper rates, but they may take longer to give you with the funds you need. It’s critical to shop around and determine which choice is best for your company. Any of these eight lenders may be a suitable fit for your company, depending on your credentials and requirements.
Frequently Asked Questions
What credit score do you need for a business line of credit?
A credit score of 700 is required for a business line of credit.
What are the easiest lines of credit to get?
If you are looking for a credit card, the Chase Sapphire Preferred is a good option.
Which loan is best for small business?
A personal loan is best for small business.
